How to Increase Your Wealth without Increasing Your Income

by Percival J. Meris on November 28, 2010


Wealth Photo Courtesy of Pierre Amerlynck via stock.xchng

TO INCREASE WEALTH, INCREASE IN INCOME IS NOT AN OPTION FOR MANY. For others, it is not even an answer. How do you increase your wealth without increasing your income?

The Wealth-Poverty Equation

Wealth is the collection of material resources you possess, intended to satisfy your needs and wants. Wealth, however, is a relative concept.

A person may find his small income more than sufficient for his needs. On the other hand, another may find his big income less than sufficient for his needs. Who of the two is wealthier?

Great possessions do not necessarily make you wealthy. You are poor, if despite possession of great wealth you feel a general sense of want. Wealthy, if you feel adequately satisfied by what you have, despite meager quantity.

If your unsatisfied needs and wants are less than your resources, you are wealthy. If more, you are poor.

Some people continue to accumulate wealth way beyond their needs to the neglect of what are more important: their health, their families, etc. They are those who are never satisfied with what they have. Materially they are wealthy, but in spirit they are poor.

How to Increase Your Wealth

To increase wealth without increasing income, reduce needs and wants, and extend the utility of resources.

Reduce Your Needs and Wants

A businessman increases profits not by increasing price but by reducing cost.

We increase wealth not by increasing income but by reducing expenses. This means cutting down on our economic needs and wants.

You don’t increase your wealth by increasing your income, if you correspondingly increase your needs and wants, as well.

It is possible to eliminate wants altogether. It is not possible to eliminate needs, though. At best, they can only be minimized down to the most basic: food, clothing, and shelter.

It is not necessary to eliminate wants altogether to increase wealth. Just reduce needs and wants to below income at a level that you find reasonable degree of satisfaction. Come up with a hierarchy of needs and wants, and identify which can be reduced or given up.

The sense of satisfaction is psychological. You are as wealthy as you make up your mind to be. The volume of material possessions is irrelevant. Wealth is an attitude. Wealth is a spiritual issue.

Extend the Utility of Your Resources

By economizing, you increase the purchasing power of income. You can buy more of the other things you need than you would otherwise be unable to, without judicious use of your resources. This is extended satisfaction.

Economizing calls for conservation. Reducing, reusing, and recycling are ways of conserving resources and extending their utility. Restoring those rendered unusable to their original utilitarian value is one other way.

The Satisfaction Level Wealth Brings

Material wealth is a means; satisfaction its end. Any means that does not attain its end loses value. If wealth does not bring satisfaction, it ceases to be wealth. A person, not made satisfied by his possessions, is not wealthy.

Viewed from a positive perspective, dissatisfaction does not negate satisfaction, as advocated. It is seen in positive light, when used as a motivation for improvement.

It is dissatisfaction, produced by negative view of wealth, that creates a sense of want, characteristic of a state of poverty. It is negative view to covet wealth over and above what you need. It is negative view to acquire it at the expense of others. We do not advocate this unproductive and harmful kind of dissatisfaction.

Demand for Wealth as an Influence of Commercial Advertisements

Many modern needs and wants are created. Businesses create need for a product, for which there is initially no real need. Commercial advertisements rev up the market’s interest and pique its sense of need for a new product. The more the consumer needs, the bigger the industry profits.

Many consumers are merely unconscious victims of these commercial ploys. Those who are not judicious acquire the perception that these products are indispensable to their satisfaction.

Creating and Maintaining an Inner Sense of Wealth

Here are some things you should observe to maintain your sense of wealthiness:

  • Avoid situations that force your needs to grow.
    Stay away from sickness, and refrain from contracting for unnecessary indebtedness.
  • Develop a sense of detachment from things that are merely want-satisfying.
    Learn to live a simple life. You will be happier – and wealthier – this way.
  • Avoid wasteful consumption of resources.
    The money you save can be used for purchasing other items you need, not within your regular budget.
  • Count your other possessions that money cannot buy.
    The best things in life are free. Why should wealth be expensive? Why should it always be material in form?

Given a fixed amount of income, doing this will save you money and make the savings grow beyond your needs, providing extra funds for contingencies.

If your needs and wants are less than your material resources, you possess true wealth.

“The richest person is not he who has the most, but he who needs the least.” ~ Anonymous


{ 0 comments… add one now }

Leave a Comment

CommentLuv badge

Previous post:

Next post: